Buying a snowmobile is an exciting investment, and also one that you’ll want to be sure of. Whether you’re eyeing a new or used model, understanding the ins and outs of a snowmobile loan will help you find the right solution for you.
Key Points You Should Know About Snowmobile Financing
- Multiple Financing Options: You can finance a snowmobile through traditional lenders, specialized lenders, dealerships, or directly with manufacturers.
- New vs. Used: New snowmobiles often come with lower interest rates but higher upfront costs, while used snowmobiles are cheaper but may carry higher rates and less flexible terms.
- Loan Features: Loan amounts typically range from $5,000 to $30,000 or more, with interest rates typically between 9.99% – 35% and terms from 2 to 7 years.
Can You Finance A Snowmobile?
You can finance a snowmobile purchase through a bank, credit union, online lender, dealership, or specialized powersport vehicle lender.
Taking a loan to purchase a snowmobile will allow you to spread the cost over time, making it easier to afford. However, the process and terms differ depending on whether you’re buying a new or used snowmobile.
New Snowmobile Financing
Financing a new snowmobile can often mean lower interest rates or even special promotional deals offered by manufacturers or dealerships. Generally, lenders will view new snowmobiles as less risky, since they’re in perfect condition and have a higher resale value.
That said, the purchase price is significantly higher than a used snowmobile, so you’ll have larger monthly payments and/or a longer loan term.
Used Snowmobile Financing
Due to the lower purchase price, getting a loan for a used snowmobile is usually more affordable upfront. However, lenders tend to charge higher interest rates since used snowmobiles may require more repairs and maintenance.
Moreover, some older models may not qualify for all financing programs, and you’ll also need to ensure the vehicle has no liens or significant maintenance issues.
Nevertheless, financing a used snowmobile can be a smart financial choice, especially if you don’t have the credit score needed to access the best rates for a new model.
Snowmobile Financing Features
Loan Amounts
Loan amounts for snowmobile financing usually range anywhere from $5,000 to $30,000 or more, depending on the brand and model of the snowmobile and whether it’s new or used.
Many lenders will allow borrowers to finance up to 100% of the purchase price, but adding a down payment of 10% to 20% will improve your chances of approval, not to mention lower your interest rate, reducing the overall cost of the loan.
Financing Rates
Interest rates for snowmobile loans in Canada usually range from 10% to 35%, although this can vary widely depending on your credit score, finances, and the lender you choose.
Borrowers with good financial and credit profiles will have access to the most competitive rates. If your credit score is on the lower end, alternative lenders, like online personal loan providers, can still offer viable financing options.
Terms
In most cases, snowmobile loan terms will range from 2 to 7 years. Keep in mind that opting for a shorter term can result in higher monthly payments, but save you money on total interest, making the loan less expensive overall.
On the other hand, a longer term will reduce your monthly payments, which is helpful for those on a tighter budget, but you’ll pay more in interest over the life of the loan.
Is Manufacturers Financing Available For Snowmobiles?
| Financing Details | ||
| Polaris | Polaris dealerships offer point-of-sale financing through TD. | Learn More |
| Yamaha | Yamaha Financial Services offers standard financing and balloon financing. | Learn More |
| Arctic Cat | Arctic Cat has various financing offers and is partnered with TD Auto Canada. | Learn More |
| Lynx | Lynx has special financing deals starting at 0% for certain models. | Learn More |
How To Apply For Snowmobile Financing In Canada
Applying for snowmobile financing in Canada is just like applying for any other kind of loan. You can explore your options through dealerships, work directly with traditional lenders, or even directly with a manufacturer if they offer financing.
Depending on who you apply with the process and requirements will vary.
Bank
Most banks offer powersport financing through their partner dealerships. However, you can also apply for a personal loan or a line of credit directly with the bank to purchase your snowmobile. Getting financing through a bank will usually yield more competitive rates, but you’ll need to meet their strict requirements.
A Dealership
A lot of dealerships partner with multiple lenders, some of whom specialize in bad credit financing, allowing you to easily find snowmobile financing as part of the purchase process. Applying for financing with a dealership is usually the most convenient option as you can choose the model you like and arrange the financing all in one go.
Online Lender
If you struggle with bad credit or finances, apply with an online lender who specializes in snowmobile financing. These lenders often have fewer requirements for financing. However, they charge much higher rates as a result. That said, you can usually complete the entire loan application online and get funded within a day.
Manufacturer
Alternatively, manufacturers often provide financing directly, so checking their website is a good starting point for model-specific options. Moreover, you can often find special deals such as cash discounts and 0% financing.
What You’ll Need to Apply for Snowmobile Financing
- Down Payment: Many lenders will require a downpayment between 10% and 20% of the snowmobile’s purchase price. A larger down payment can improve your approval odds and help secure better terms.
- Credit Score: Requirements will vary by lender, but generally a score of 660 or higher will help you access more competitive rates. For lower credit scores, consider bad credit or alternative lenders.
- Documentation: You’ll need to provide proof of income (such as pay stubs or tax returns), bank statements, and/or proof of employment, and potentially more, depending on your lender’s approval process.
- Insurance: In Canada, snowmobile insurance is often required for financed vehicles. Lenders typically require comprehensive coverage to protect against theft, damage, and liability before finalizing a loan.
- License: In most provinces, a valid driver’s license is enough to legally operate a snowmobile for those over the age of 16. There are also safety courses and licenses specific to snowmobiles in provinces like Ontario, where the Motorized Snow Vehicle Operator’s License (MVSOL) can be used in place of or in addition to a regular driver’s license.
Can You Finance A Snowmobile With Bad Credit?
Yes, you can secure a loan for a snowmobile even if your credit score is low, but your options may be more limited.
There are lenders who specialize in bad credit loans, i.e. loans tailored to borrowers with lower credit scores. The downside is you’ll be facing higher interest rates and often less flexibility when it comes to the loan term.
If you have a lower credit score, consider saving some cash in order to offer a higher down payment. That can help you land better terms and reduce the overall costs in interest. You could also consider adding a co-signer, and look for online alternative lenders.
Can I Get A Snowmobile If I’ve Declared Bankruptcy?
While it is possible to secure financing for a snowmobile after bankruptcy, it depends on your current financial situation. For example, if your bankruptcy case has been discharged and you’ve started rebuilding your credit, lenders may be willing to approve financing, though likely with higher interest rates.
In such cases, you can look to improve your chances of loan approval by repairing your credit. Coming up with a significant down payment, or working with a lender experienced in post-bankruptcy loans, can also help your application.
Can I Get A Snowmobile If I’ve Filed A Consumer Proposal?
You can get a snowmobile if you’ve filed a consumer proposal, but your financing options are likely to be limited. While a consumer proposal severely damages your credit score and increases your lending risk profile, there are some lenders that specialize in working with borrowers in this situation. Just be prepared for much higher interest rates, and strict loan terms.
If possible, you may consider waiting until you’ve completed the consumer proposal and started rebuilding your credit to secure a more affordable loan.
Learn more: Can I Get A Loan While In A Consumer Proposal?
Calculate Your Snowmobile Loan Payments
The cost of a snowmobile can range widely, in particular depending on whether it’s new or used. While newer models will cost between $10,000 and $20,000, a used snowmobile is much more affordable, usually landing between $3,000 and $12,000. Factors such as the brand, model, engine size, and other additional features will also affect the total price.
Your loan payments will depend on a few key factors. Generally speaking, a newer model will be financed by a larger loan and higher payments, with used models costing less to finance overall.
Loan terms will usually range from 2 to 7 years, but other factors such as your down payment, credit score, finances and more will also come into play to determine your snowmobile loan payments.
Leasing vs. Financing A Snowmobile
Financing involves taking out a loan to purchase a snowmobile and making monthly payments toward the principle with interest until you’ve acquired ownership.
Leasing, on the other hand, is essentially renting the snowmobile for a set term, typically between 2-4 years. Lease payments are generally lower than monthly loan payments, but you won’t own the snowmobile at the end of the lease (unless you choose to buy it out).
Leasing is a useful avenue to take if you prefer riding the latest models and are not interested in owning a snowmobile long-term. Just be aware that leasing may come with mileage or usage limits, as well as a list of potential fees for excessive wear and tear, which can increase the overall cost.
Learn more: Leasing vs. Buying
Loans Canada Can Help You Find Snowmobile Financing In These Provinces
- Ontario
- Alberta
- Quebec
- British Columbia
- Nova Scotia
- Manitoba
- Saskatchewan
- New Brunswick
- PEI
- Newfoundland and Labrador
What Snowmobile Brand Are You Interested In?
| Brand | Model | |
 | Ski-Doo | Summit, Freeride, Renegade, Grand Touring |
 | Polaris | PRO RMK, RMK Khaos, Switchback, Indy |
 | Arctic Cat | M 400 Alpha One, ZR 400, Norseman 400, Rio 400 Touring |
 | Yamaha | Sidewinder, SRViper, SVenom |
Additional Factors To Consider When Purchasing A Snowmobile
Do You Need A Special License To Drive A Snowmobile In Canada?
Generally, individuals aged 16 and older can operate a snowmobile with a valid driver’s license. In Ontario, for example, you must carry a valid driver’s license or a motorized snow vehicle operator’s license (MSVOL), or a snowmobile driver’s license from another jurisdiction if operating a snowmobile on public lands.
Before operating a snowmobile, it’s essential to familiarize yourself with the specific regulations in your province or territory to ensure compliance with local laws and safety requirements.
How To Insure A Snowmobile In Canada
Snowmobile insurance in Canada is mandatory in most provinces when operating your vehicle on public land or trails. In most cases, you’ll need liability coverage to protect against third-party injuries or property damage, at minimum.
You can look to private insurance companies, or specialized brokers, to get an idea of the types of coverage available to you. Always take the time to compare quotes to find the best possible coverage and rates.
Snowmobile Maintenance Costs
Snowmobile maintenance costs can average anywhere from $300 to $1000 annually, depending on usage, condition of your vehicle and storage expenses.
Your key expenses will be fuel and routine oil changes, which are essential for performance and operation, as well as potential track repairs, battery replacements etc which can add up over time.
You may also need to invest in safety gear including helmets and snowmobile suits, not to mention transportation trailers.
